Forex  markets: EURUSD, GBPUSD Are Aiming for Rebound on Monday’s Poor Liquidity in the broader Markets after the US debt ceiling likely deal.

Forex – Salient Points Impacting the EURUSD and GBPUSD

The move back to 1.0800 of the EURUSD encourages a bounce out of oversold zone.

GBPUSD Aiming to Profit from US Debt Deal with Support from 100-Day MA.

Due to today’s US and UK bank holidays, low liquidity is anticipated.

EUR and GBP – US pairing seen stronger

Something should have had minimal liquidity in forex market A possible agreement on the US debt ceiling has dominated Monday considering the bank break in the UK and the US. While risk assets look to rebound after two weeks of escalating ambiguity. We have already witnessed some movements during the Asian period. One is currently seeing the results, as the AUD heading the way and the US dollar starting today as the worst currency.

Source: FinancialJuice

Agreement on US Debt Ceiling

Although uncertain at this point, the nation’s debt ceiling agreement must still pass both houses of Congress.  Prior to the President can sign it. A quick overview thus far suggests that both parties have made several compromises. Including with the ceasing of student debt being one of the main issues in dispute. Republican officials predict that as a result of the agreement, defense expenditure would climb by 11% to $885 billion. While non-defense discretionary expenditures will decrease to proportions seen in 2022.

The banking vacation in Europe & the US, as previously noted, is expected to cause decreased liquidity & turbulence to begin the week. The UK and the euro zone haven’t got many risky events scheduled for the remaining days of the week. Although Thursday brings Euro Region inflation data.

Economic Activity Schedule for May 30

Final thoughts and a technical outlook

It is vital to keep in mind that while safe-haven attraction may have initially fueled the recent surge and the strength of USD. Recent data have shown an aggressive revaluing of the Fed’s Rate Hike prospects from June and thereafter. Given that the NFP is this coming week, the Dollar Index may experience some pullback before the US Jobs report, with a good print expected to prompt USD purchasing and a rebound.

Daily Graph of EURUSD Pair (May 29)

Source: TradingView

Technically speaking, the EURUSD is supported at a critical point around the 1.0700 mark. The concern is that the lac

There is a good likelihood that the EURUSD will spend the remainder of the day in a small band about 1.0700 to the daily top. Which is likely to be near 1.0745, given the bank holiday. Both sides of a breach of these limits may have difficulty and fail to have any kind of major execution.

k of liquidity during the London times may postpone any possible rebound in the EURUSD. The rise in the Asian period struggled to gain pace after the trading session drew to a close.

Intraday Important Levels

Resistance levels:

• 1.0745
• 1.0800
• 1.0840

Support levels:

• 1.0700
• 1.0650
• 1.0600

Daily Graph of GBPUSD Pair (May29)

Source: TradingView

Given its recent drop, the GBPUSD is currently faced with comparable difficulties as the EURUSD. The duo is overbought at this juncture and is sitting close to the 100-day MA. Which provides supports at the 1.2290 stage, so a rebound is overdue. Although the finish of Friday’s inversion hammer candle pointed at possibility for more improvements. We might not see the sharp rise before liquidity.

Intraday Important Levels

Resistance levels:

• 1.2372
• 1.2436 (50-day MA)
• 1.2500

Key support levels:

• 1.2290 (100-day MA)
• 1.2250
• 1.2200